Sugar mills in Maharashtra to face stricter licensing norm |
By e4p Correspondent, Saturday, June 27, 2009, 15:04 Hrs [IST] |  |
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Category: Food Products | Tags: sugar factories licensing norms, Sugar mills Maharashtra, contract farming | Share:  |
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The Maharashtra Government is mulling over a proposal to impose stringent licensing norms for sugar factories in the state.
Under these norms, the state government is likely to deny crushing licences to mills that have cane supply assurances of less than 50 per cent of their capacity. The mills will have to give an assurance to the state government to this effect. As corporate and contract farming is still not prevalent in India, the mills will not be able to grow the crop.
However, it is learnt that the proposal is likely to lead to a "price war" due to shortage of cane. In 2008, 144 (116 co-operatives and 28 private) out of 193 registered factories got licence for crushing as against 173 (146 co-operatives and 20 private) in the previous season. But many of these worked at less than half their capacity due to shortage of cane.
Source : ProjectsToday
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